Shrinking transportation revenues, the increasing cost of maintenance and construction projects, and uncertainty surrounding long-term federal funding sources are forcing the Commonwealth Transportation Board to conduct a rare mid-year revision to its Fiscal Years 2009-2014 Six-Year Improvement Program passed in June.

Thursday, the CTB hosted a final public meeting to discuss changes to the program that occurred since a series of six-year program hearings were held in January.

The CTB is responding to an overall $2.6-billion shortfall in available state and federal transportation revenues over the next six years. A total of $2 billion in highway cuts has now been trimmed from the original six-year improvement program adopted in June. This is on top of $1.1 billion in cuts made when that program was adopted.

“These are the most challenging times seen in several generations,” says Pierce R. Homer, Virginia secretary of transportation. “The reality is stark. We’ve all but eliminated future projects for congestion relief and economic development. We now must focus only on the phases of projects under way and keeping our infrastructure from crumbling.”

A Commitment to Rail, Transit and Highway Maintenance

This six-year program revision highlights the CTB’s continued support of public transportation. The Virginia Department of Rail and Public Transportation will allocate $2.8 billion to rail and transit operators for capital improvements such as replacing trains and buses and operational improvements that will support transportation choices for the traveling public. While highway funding continues to decrease, the transit and rail portion of the six-year program has grown to 33 percent in the current revised draft program.

“Transit has become an economic lifeline in many communities across Virginia and this spending program reflects that,” says Charles M. Badger, DRPT acting director.

The Virginia Department of Transportation is required by law to maintain its existing roadways before building new ones. VDOT estimates that it needs more than $1 billion to stabilize deteriorating pavements on its 58,000-mile highway network and $3.7 billion to replace its structurally deficient bridges.

“Our revenues continue to shrink while our need to maintain our existing highway network grows,” says David S. Ekern, VDOT commissioner. “Even by transferring $3.2 billion from construction to maintenance over the next six years, we are falling behind in our ability to repair crumbling pavements and aging bridges. We are forced to reduce our annual increase in maintenance investments from four percent to three percent.”

VDOT will focus available construction and maintenance funding to addressing serious interstate, primary road pavement needs and to replace deteriorating or aging structures among the commonwealth’s 20,879 structures and bridges.

Over time, limited available funding and increased costs of maintenance activities will mean lower levels of service for drivers and a likely deterioration in pavement and bridge conditions. VDOT will have to eliminate approximately 1,000 employees and reduce service levels for such items as rest areas, ferry services and roadside maintenance to focus funding on pavements and bridges.

Transportation revenue reductions have forced the CTB to significantly reduce the six-year program over the past several years.

- FY 08-13 Program Adopted June 2007: $11 billion ($8.7 billion for highways)

- FY 09-14 Program Adopted June 2008: $10.6 billion ($7.9 billion for highways)

- Revised FY 09-14 Program To Be Adopted February 2009: $8.9 billion ($6.0 billion for highways)

“Reductions like these will have serious impacts to our long-term project development process,” says Ekern. “What we see here today is not a one-time shortfall that we can weather just by cutting back on the number of projects. New construction is going to be a novelty for our foreseeable future. These changes mean a fundamental shift from VDOT’s role as a road builder to this department becoming a maintenance and emergency response agency.”

Impact on Localities

The impact of these funding reductions will be felt throughout the Commonwealth. All available revenues will be committed to fund required maintenance activities, to pay debt and to fund projects already under way. Federal funds will continue to be distributed as required.

Localities will no longer be able to count on state funding to pay for road construction and maintenance. Transit agencies will also no longer be able to depend on state funding to significantly offset operating costs.

“The only way we can keep our maintenance commitments, meet our federal obligations and honor all of the contracts currently in place to build projects around the state is to reduce other projects and programs,” says Homer. “We know this will seriously affect localities’ efforts to meet local transportation needs, but there just simply is not enough revenue to go around.”